Ascott Reit acquires $95.2m prime hotel in Tokyo

This is Ascott REIT's 6th acquisition this year.

Ascott Residence Trust yesterday revealed that it has acquired a prime hotel in Tokyo for $95.2m (JPY 8b). The 206-unit hotel is located in Shinjuku and is currently operating as Best Western Shinjuku Astina.

Following the acquisition, it will be rebranded into a Citadines-branded serviced residence by Ascott REIT. This is the sixth property that Ascott Reit has acquired this year.

It follows Ascott Reit’s acquisitions of a rental housing property in Fukuoka, Japan and four serviced residences in Kuala Lumpur, Malaysia as well as Dalian, Wuhan and Xi’an in China.

The acquisition is expected to be accretive with an EBITDA yield of 4.3% and would increase, on a pro forma basis, ART’s FY13 DPU by 0.6% from 8.40 S-cents to 8.45 S-cents.